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INTERVIEW QUESTIONS
COMMON PROFICIENCY TEST (CPT)
THEORY OF DEMAND AND SUPPLY
DETAILS
Question: Expansion and contraction of demand curve occurs due to:
a)Change in the price of commodity
b)Change in the price of substitute
c)Change in income
d)None
Answer: a)Change in the price of commodity Description: When as a result of decrease in price, the quantity demanded increases, in economics we say that there is an expansion of demand and when as a result of increase in price, quantity demanded decreases we say that there is a contraction of demand. Hence, we can conclude that expansion contraction of demand curve occurs due to change in price of a commodity.
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Theory of Demand and Supply Interview Questions & Answers -
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Question:
Expansion and contraction of demand curve occurs due to:
a)Change in the price of commodity
b)Change in the price of substitute
c)Change in income
d)None
Answer:
a)Change in the price of commodity Description: When as a result of decrease in price, the quantity demanded increases, in economics we say that there is an expansion of demand and when as a result of increase in price, quantity demanded decreases we say that there is a contraction of demand. Hence, we can conclude that expansion contraction of demand curve occurs due to change in price of a commodity. Source: CoolInterview.com
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